El Salvador has ramped up its Bitcoin holdings, purchasing 6 BTC on March 10 instead of its customary daily acquisition of 1 BTC. This notable increase in purchasing activity occurs against a backdrop of intensified scrutiny from the International Monetary Fund (IMF), which has urged the country to reconsider its Bitcoin accumulation strategy.
The National Bitcoin Office announced this bold move on March 10 via X, revealing that the government purchased an additional 5 BTC alongside its regular daily acquisition. This brings El Salvador’s total Bitcoin reserves to 6,111.18 BTC, worth approximately $493 million at current market prices.
The latest purchase coincides with a decline in Bitcoin’s price, which has been fluctuating just above $80,000 at the beginning of the week. El Salvador has exhibited similar tendencies in the past, occasionally making larger bulk acquisitions outside its daily routine. Notably, the nation acquired 12 BTC on January 19 and 11 BTC on February 4, in addition to the 5 BTC purchased on March 3.
In December 2024, the Salvadoran government reached a financing agreement worth $1.4 billion with the IMF. As part of this agreement, the country agreed to retract Bitcoin’s status as legal tender and to limit public sector engagement with the cryptocurrency.
The IMF has consistently expressed concerns regarding the adoption of Bitcoin in El Salvador, citing potential financial risks. While some anticipated that the agreement would lead to a reduction in Bitcoin purchases, the latest acquisition indicates that the government persists in its strategy to bolster its holdings.
Ongoing IMF Pressures
On March 3, the IMF intensified its pressures with a new request for an extended arrangement under its fund facility for El Salvador, which was filed in support of its ongoing financial assistance framework.
The technical memorandum underlined a condition that explicitly prohibits the public sector from voluntarily accumulating BTC. Furthermore, it proposed restrictions on the issuance of any public sector debt or tokenized instruments associated with Bitcoin.
However, President Nayib Bukele has reaffirmed his commitment to the country’s Bitcoin holding strategy, dismissing the IMF’s external pressures as mere ‘whining.’ He emphasized that El Salvador’s purchasing activities would continue unabated.
“No, it’s not stopping. If it didn’t stop when the world ostracized us and most ‘Bitcoiners’ abandoned us, it won’t stop now, and it won’t stop in the future,” he stated in a post shared on X.
This latest acquisition demonstrates El Salvador’s resilience and commitment to its Bitcoin strategy, even in the face of opposition from global financial institutions.
The post El Salvador Buys the Dip: Adds 6 More BTC to Its Holdings appeared first on CryptoPotato.
